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  • Sparrows Papers,

    Robin Powell – Product Innovation for the Decumulation Market

    April 3, 2024

    Robin Powell, editorial consultant to Sparrows Capital   Low-cost, evidence-based investment solutions have severely disrupted the traditional DFM market and are greatly improving outcomes for clients in the accumulation phase. But, says ROBIN POWELL, it’s...

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  • Press/Video,

    International Adviser – David Ogden : Decumulation – the regulator’s challenge

    April 3, 2024

      On the back of the FCA's Retirement Outcomes Review, Sparrows Capital Limited's David Ogden looks at the complexities involved in regulating decumulation advice, and the implications for advisers of the specific focus on this...

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  • Press/Video,

    Sparrows Capital partners with Just Group to launch innovative retirement income solution

    February 26, 2024

      LONDON - 26 02 2024   Evidence-based MPS provider Sparrows Capital (“Sparrows”) and Just Group (“Just”) have partnered to launch a retirement income solution, SCore-D, to help advisers navigate the financial risks their individual clients...

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  • Press/Video,

    FT Adviser – John Bennett: Time constraints are seeing advisers suffer from an investment block

    January 25, 2024

      Sparrows Capital Limited's John Bennett looks at the effect of IFA market consolidation on independence, investment choice, and client outcomes.

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  • Press/Video,

    FT – Mark Northway: Bubble fears siphon ETF flows away from Magnificent Seven

    January 23, 2024

    Steve Johnson looks at the popularity of equal-weighted ETFs in 2023 and why investors in the US may be looking to cap their exposure to the Magnificent Seven stocks.

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  • Press/Video,

    YourMoney.com – Mark Northway: How not to outlive your retirement savings

    January 11, 2024

    For many investors, the biggest worry is running out of money during retirement. There are five reasons investors might outlive their retirement savings: 1) Mismatch between wealth and lifestyle 2) Effects of exposure to adverse...

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  • Sparrows Papers,

    Robin Powell: Is sequence risk about to rear its ugly head?

    January 10, 2024

    Robin Powell, editorial consultant to Sparrows Capital There are few things more depressing than the thought of running out of money before we reach the end of our lives. Most of us would like to...

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  • Press/Video,

    IFA Magazine – Are ‘at retirement solutions’ set for a shakeup? A Q&A on the decumulation market with Sparrows Capital’s Mark Northway

    January 9, 2024

    Following on from the announcement by The Pensions Regulator (TPR) in late 2023 that the watchdog plans to share interim guidance on decumulation in 2024, Mark Northway, Investment Manager at Sparrows Capital has been actively...

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  • Press/Video,

    International Adviser – Sparrows Capital Q&A: ‘There is no one-size-fits-all decumulation strategy’

    December 20, 2023

    Following from the recent announcement by The Pensions Regulator (TPR) that the watchdog plans to share interim guidance on decumulation, UK Adviser spoke to Mark Northway, investment manager for the investment service, Sparrows Capital.  

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  • Press/Video,

    Investment Week – David Ogden: Proof of value a key challenge for firms as industry shifts focus to consumer

    December 19, 2023

    Investment Week asks market experts what the focus on value for customers will bring in 2024

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  • Press/Video,

    FT Adviser – David Ogden: Is simplified advice a realistic venture?

    December 13, 2023

    The issue of the advice gap and how to encourage individuals to engage with their finances for their own long-term benefit is a long-running and, once again, topical one as the FCA wrestles with the...

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  • Sparrows Papers,

    Robin Powell – Is now the time for hedge funds?

    November 16, 2023

    By Robin Powell, editorial consultant to Sparrows Capital     "The four most dangerous words in investing,” the famous investor Sir John Templeton once said, “are 'this time it's different’.”   Again and again, investors...

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  • Press/Video,

    Portfolio Adviser: Robin Powell – Is now the time for hedge funds?

    November 16, 2023

    Robin Powell, Sparrows Capital Limited's editorial consultant, looks at the arguments for and against hedge funds as a diversifier at this point in the investment cycle. Higher inflation, sensible bond yields, and low equity expected premium...

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  • Press/Video,

    Professional Adviser: Cost and consistency: The role of MPS post-Consumer Duty

    November 15, 2023

    Professional Adviser interviews Sparrows Capital's, David Ogden and Mark Northway on the regulatory tailwind favouring MPS.

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  • Press/Video,

    Money Marketing: David Ogden – ‘Confidence is key’ when it comes to selecting an MPS

    November 14, 2023

    Darius McQuaid speaks with Sparrows Capital's David Ogden about the MPS selection process for advisers.

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  • Press/Video,

    IFA Magazine : Regulators believe they’ve found their new star, but are LTAFs the solution for illiquid assets?

    November 7, 2023

      Sparrows Capital's Mark Northway concludes that there is undoubtedly logic in the LTAF approach, but major questions remain, including whether a new fund structure is really needed, and whether a 90-day (plus) notice period...

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  • Press/Video,

    International Adviser: The Shoehorning Ghost that could haunt Consolidators

    November 7, 2023

    Sparrows Capital Limited's David Ogden looks at the implications of vertical integration on the provision of value to end clients. Where owners or majority shareholders are private equity firms, businesses need to ensure that their owners’ laser-like...

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  • Press/Video,

    Investment Week – Deep Dive: Investors recognise LTAF potential but structure has yet to build market credibility

    October 21, 2023

    The potential to provide higher risk-adjusted returns and a wider pool of investment opportunities has driven some asset managers to embrace the Long-Term Asset Fund, but the structure has yet to build its market credibility....

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  • Newsletters, Sparrows Papers,

    Sparrows Capital welcomes Sarra Slegg to the Team

    August 10, 2023

        Sparrows Capital is delighted to announce that Sarra Slegg has recently joined the SCore MPS team. She will be working with John Bennett and Jack Boon and Dan Smith and will be responsible for...

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  • Newsletters, Sparrows Papers,

    Sparrows Capital welcomes Dan Smith to the Team

    July 20, 2023

        Sparrows Capital is delighted to announce that Dan Smith has recently joined the SCore MPS team. He will be working with John Bennett and Jack Boon to expand our UK adviser network. Dan...

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  • Newsletters, Sparrows Papers,

    Adrian Durham appointed to Sparrows Capital board

    June 27, 2023

      Sparrows Capital, a multi-award-winning investment services firm, is delighted to announce the appointment of Adrian Durham as non-executive director. Adrian is the founder and Group CEO of FNZ Group and has overseen the development...

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  • Press/Video,

    IFA Magazine: “Failed banks reminiscent of the S&L crisis not the GFC:” Analysis from Sparrows Capital’s Mark Northway

    June 26, 2023

    In poetry, the alternative rhyme scheme delivers assonance every other line. Investors might want to take note of this construct as they review portfolio risks against the background of today’s complex environment, says, Mark Northway, Investment...

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  • Newsletters, Sparrows Papers,

    Rupert Dickinson appointed chair of Sparrows Capital

    June 16, 2023

      Sparrows Capital is delighted to announce the appointment of Rupert Dickinson as chair of the board to lead the company through its next stage of development. The appointment is subject to regulatory approval. Rupert...

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  • Press/Video,

    TEBI: IS CHOICE A BLESSING OR A CURSE FOR ACTIVE FUND RETURNS?

    June 2, 2023

    When we read about the “benefits” of active fund management, it usually boils down to choice. In other words, while passive fund managers have no option but to track the index, active managers can choose...

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  • Newsletters, Sparrows Papers,

    Sparrows Capital adds Market portfolios to SCore MPS Suite

    May 31, 2023

    Sparrows Capital has added a range of Market portfolios to its popular SCore MPS suite. The Market range comprises five portfolios ranging from 20% equity to 100% equity. The portfolios reflect a pure market capitalisation...

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  • Press/Video,

    IFA Magazine – Sparrows Capital: Why the paradox of choice is hurting active fund managers

    May 18, 2023

    Choice is fundamental to active management, but the paradox is that it’s the very thing that seems to detract from its performance. Sparrows Capital's Mark Northway looks at the effector of professional behavioural bias on...

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  • Newsletters, Press/Video, Sparrows Papers,

    Sparrows Capital secures investment from FNZ Ventures

    April 28, 2023

    28 April 2023, London: Sparrows Capital, a multi-award-winning investment services firm, has secured an investment from FNZ Ventures, the corporate venture unit of FNZ, the global wealth management platform, to further develop its low-cost evidence-based...

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  • Press/Video,

    Portfolio Adviser – Mark Northway: The subtle signs that ESG is coming of age

    April 28, 2023

      The unbridled optimism and binary criteria that dominated ESG investing a decade ago has changed – for the better – and every type of stakeholder now has a much more realistic grasp about what...

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  • Press/Video,

    The Times: Should you invest in bitcoin and other cryptocurrencies?

    March 22, 2023

    Cryptocurrencies had a particularly turbulent time in 2022, with the price of bitcoin dropping below $16,000. But there are now signs that the crypto market is starting to recover. The reality is that the price of...

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  • Press/Video,

    ‘Evidence-based investing is simple in concept but complex in execution’

    February 20, 2023

    Yariv Haim outlines six factors to take into consideration when assessing model portfolio construction...

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  • Press/Video,

    Beware purveyors of anti-ESG wares

    January 30, 2023

      Sparrows Capital Limited's Mark Northway takes a light-hearted look at the recent rise of anti-ESG investment products in the United States. Highlights interesting research from Elroy Dimson, Paul Marsh, and Mike Staunton on the historical performance...

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  • Sparrows Papers, White Papers,

    The Nuances of Portfolio Construction

    January 30, 2023

    Sparrows Capital's CEO, Yariv Haim, looks at the learning opportunities from 2022. Similar investment approaches produced very different outcomes in 2022 and, with a few exceptions in lower-risk portfolios, passive approaches outperformed active – in...

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  • Press/Video,

    TEBI: Is delegating voting powers on ESG to investors a cop-out?

    December 1, 2022

    Through the voting powers that come with large shareholdings, fund management companies have huge influence over the way that the companies they invest in are run. Increasingly, however, large asset managers like BlackRock are looking...

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  • Press/Video,

    Engagement, divestment and the effect of ETF flows

    November 29, 2022

    Investors are at the centre of a lively debate about how to influence the firms they invest in to become more ethical and sustainable. The issue is further complicated when investment is through collective funds...

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  • Press/Video,

    Professional Adviser: Why advisers’ scrutiny of model portfolio services just got simpler

    November 16, 2022

    About 50% of advised assets are in model portfolio services (MPS) today. In the past few months, we have been pleased to see the launch of two comprehensive services designed to analyse and compare MPS...

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  • Press/Video,

    ETFStream: Portfolio Allocation – How should investors allocate to fixed income?

    October 31, 2022

    The traditional 60:40 model has come under pressure in recent years.

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  • Press/Video,

    Winners celebrate at IFA Magazine’s prestigious MPS awards presentation

    October 27, 2022

      Mark Northway, Investment Manager at Sparrows Capital Limited:    “We are absolutely delighted with the award for Best Innovation in MPS. We firmly believe that the benefits of scale in the investing world should...

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  • Press/Video,

    Money Marketing – David Ogden – Consumer Duty

    October 11, 2022

    Sparrows Capital Limited's David Ogden explains why the FCA's Consumer Duty will succeed where previous legislation has fallen short, and examines the very real implications for advisers and managers.  

    Read More
  • Press/Video,

    FT – Chris Newlands: Russia crisis challenges ETF sector’s ‘cockroach’ status

    October 3, 2022

    ETFs have built a reputation for being able to operate through any emergency — until now No one should realistically expect an investment wrapper to provide more liquidity than exists at the level of the...

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  • Press/Video,

    Funds Europe Roundtable: What’s driving ETFs?

    September 30, 2022

    Regulation has accelerated the acceptance of ESG. For example, if you look at pension trustees, they are not only required to address ESG and investment beliefs in the Statement of Investing Principles, but they must...

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  • Press/Video,

    Press Release: DFM Sparrows Capital signs agreement with the P1 Platform

    September 26, 2022

    DFM Sparrows Capital signs agreement with the P1 Platform Evidence-based discretionary investment manager, Sparrows Capital, launches on the P1 Platform. 26th September 2022 London-based Sparrows Capital has teamed up with the P1 Platform to provide...

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  • Press/Video,

    IFA Magazine: DFM Sparrows Capital signs agreement with the P1 Platform

    September 26, 2022

    London-based Sparrows Capital has teamed up with the P1 Platform to provide its SCore model portfolios to users of the platform and to introduce existing users where appropriate. A white-labelled version of the platform will...

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  • Press/Video,

    WealthAdviser: Sparrows Capital signs agreement with the P1 Platform

    September 26, 2022

    The cooperation offers Sparrow Capital’s adviser clients access to their SCore MPS portfolios on the low-cost P1 Platform, the firm says, while facilitating the firm’s own capped fee charging structure.

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  • Uncategorized,

    Funds Europe: Bitcoin – Most resilient and investors’ favourite cryptocurrency

    September 8, 2022

    “Cryptocurrencies are not an asset class. It would be dangerous for the ETF world to take up the cudgel and suddenly start trying to provide access”, remarked Mark Northway, Sparrows Capital’s investment manager, at a...

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  • Press/Video,

    IPE Ahead of the curve: solving the Russian share ban

    August 31, 2022

    Index investors inherently choose to follow the market through exchange-traded and index funds, but the recent prohibition on trading Russian stocks and their removal from global benchmarks has created something of a conundrum. Major index...

    Read More
  • Press/Video,

    Portfolio Adviser: Are passive ESG fixed income products safe?

    July 22, 2022

    Limited secondary trading for bonds means equities are better suited for index investing, says Sparrows Capital's Mark Northway. Index investing works well in equities because those securities are exchange traded and generally offer sufficient liquidity...

    Read More
  • Press/Video,

    The Times: How to diversify your investment portfolio when all prices are in freefall

    July 16, 2022

    Read More
  • Sparrows Papers,

    Wealth DFM Managine: Winners of IFA Magazine’s inaugural MPS awards revealed

    July 14, 2022

    Innovation in MPS Award                                                          Winner – Sparrows...

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  • Press/Video,

    ETF.com: Inside ETF Ecosystem Unwrapped 2022

    July 14, 2022

    Mark Northway, investment manager at Sparrows Capital, highlighted some structural issues within ETFs with potential to create lost returns or even existential risk. “I am concerned about the efficiency of ETFs and index investing given...

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  • Sparrows Papers,

    Ta Dah!! Winners of IFA Magazine’s inaugural MPS awards revealed

    July 13, 2022

    The growth of MPS has been an important cog in the development wheel to democratise investment. It has done this by delivering cost-effective solutions for advisers which enable those clients with relatively smaller amounts to invest...

    Read More
  • Press/Video,

    IPE Ahead of the Curve – solving the Russian share ban

    July 4, 2022

    Index investors inherently choose to follow the market through exchange-traded and index funds, but the recent prohibition on trading Russian stocks and their removal from global benchmarks has created something of a conundrum. Major index...

    Read More
  • Press/Video,

    STEP Journal – Which way the wind blows…

    June 22, 2022

    Mark Northway explains why the growing popularity of ESG investments demands a new perspective from Trustees. Mark Northway, ‘Which way the wind blows’, STEP Journal (Vol30 Iss3), p67

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  • Press/Video,

    CityWire: The Lang Cat launches MPS suitability tool

    June 16, 2022

    The tool will allow advisers to compare different model portfolio services, as well as assess and demonstrate their suitability for clients. Financial services consultancy The Lang Cat has added a new managed portfolio service (MPS)...

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  • Press/Video,

    The Times – David Brenchley – The star fund managers who can’t even beat cheap trackers

    May 16, 2022

    The conventional wisdom that active managers can outperform in volatile markets is not borne out by data. It is not in the nature of many star managers to significantly adjust the strategy. The focus is...

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  • Press/Video,

    interactive investor – Faith Glasgow – Fossil-fuel impact: does it blight passive funds?

    April 29, 2022

    On a rather different tack, Mark Northway, investment director of the passives-based investment manager Sparrows Capital, says the underlying Common Wealth argument that passive funds are deliberately supporting ‘sin stocks’ while active managers pull out,...

    Read More
  • Press/Video,

    Wealth DFM – The passive arbitrage cost is not material – Mark Northway

    April 28, 2022

    The simplicity and predictability of passive investments is their attraction, but these features have now thrown up a $4bn annual controversy (and that’s just for US funds). Investors who choose an index-tracking fund know which...

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  • Uncategorized,

    IFA Magazine – Some ESG investors will only select like-minded managers

    April 22, 2022

    Some ESG investors will only select like-minded managers that focus exclusively on ESG – but relying on subjectivity and emotion may be a mistake according to Mark Northway of Sparrows Capital, as he shares his...

    Read More
  • Press/Video,

    interactive investor – Faith Glasgow – Investment lessons from 122 years of stock market data

    March 21, 2022

    In these days of global unrest, rampant inflation, and interest rates on the rise, investors may find themselves wondering where the next body blow to returns will come from. So it is timely that Credit Suisse...

    Read More
  • Press/Video,

    Investment Week – Why ESG evangelists need to zoom out

    February 9, 2022

    There’s a growing trend towards specialising in ESG. Indeed, some fund selectors, advisers and consultants refuse to accept that an asset manager can run traditional investment products alongside ESG offerings. Mark Northway points out that...

    Read More
  • Press/Video,

    FT: Emma Boyd – ESG metrics trip up factor investors

    November 1, 2021

    It might infuriate proponents of sustainable investing that ESG metrics were deemed unsuitable for use in a factor-based approach, but they should keep in mind the potential risks of doing so. It’s more prudent for...

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  • Press/Video,

    Myth busting: Why investors are turning to ETFs in volatile markets

    November 1, 2021

    Market volatility has long been considered a happy hunting ground for active managers but investors are increasingly turning to ETFs in times of uncertainty. Traditionally considered an environment for an active manager to flourish, the Bank...

    Read More
  • Press/Video,

    IFA Magazine – COP26: Views from the market 

    November 1, 2021

    In anticipation of COP26, IFA Magazine asks a number of industry experts, including Sparrows Capital's Mark Northway, to discuss their expectations and to review potential hurdles to meaningful progress. COP26 is one in a series of...

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  • Academic Papers, Behavioural Finance,

    TEBI – Larry Swedroe: Salience Theory

    September 23, 2021

      The bottom line is that salience theory predicts that probabilities of the most salient (extremely favourable) outcomes are inflated, while probabilities of less salient (greater downside risk) outcomes are underweighted. The result is that...

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  • Academic Papers, Behavioural Finance,

    TEBI: Larry Swedroe – Online buzz harms returns

    September 21, 2021

    The takeaway for investors is to stop paying attention to what is almost certainly just noise. You are best served by building a globally diversified portfolio that reflects your unique ability, willingness and need to...

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  • Press/Video,

    IFA Magazine: Sparrows Capital has partnered with Hubwise to offer the SCore range of model portfolios.

    August 20, 2021

    Both Sparrows and Hubwise offer transparent and disruptive pricing models delivering quality investment solutions at fair value to advisers and their clients. A pioneer of Evidence-Based Investing, Sparrows Capital’s SCore MPS portfolios are designed to...

    Read More
  • Press/Video,

    Boring Money: Have sustainable funds run their course?

    August 17, 2021

    Have sustainable funds run their course? Certainly, it’s one conclusion that could be drawn from a dismal recent run of performance that has seen sustainability funds sink to the bottom of the performance tables. However,...

    Read More
  • Press/Video,

    Money Marketing: Don’t ditch ‘tried and tested’ investments for ESG

    July 15, 2021

    The biggest change in the investment world recently has undoubtedly been the huge increase in focus on ESG. Managers, often driven by marketing forces, rush to abandon tried and tested investment philosophies to jump on...

    Read More
  • Press/Video,

    Portfolio Adviser: There’s more going on under the ESG hood than meets the eye

    June 30, 2021

    Serendipity or systematic premium? That’s the question dogging the environmental, social, and governance (ESG) investment industry right now. Barely a day goes by without an announcement of more ‘evidence' behind the notion that ESG investing...

    Read More
  • Newsletters, Sparrows Papers,

    Yariv Haim – How evidence-based investing can help younger investors

    June 24, 2021

        If I knew then what I know now:   The last 18 months have been something of a white-knuckle ride for many long-term investors. But for first-timers—particularly those in their twenties and thirties—...

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  • Press/Video,

    Professional Paraplanner:

    June 23, 2021

    Traditional percentage-based pricing is being challenged, not least by investors with larger portfolios. Paraplanners are at the heart of the value discussion, so how can they help move the cost conversation forward, asks Mark Northway, investment manager...

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  • Press/Video,

    Professional Adviser – Mark Northway: Why critics might be wrong about deserting 60/40

    June 17, 2021

    Wherever you look, the bond doomsayers are there. Their message is that the fixed income bull market, fueled by decades of falling rates, simply cannot go on any longer with yields across trillions of dollars...

    Read More
  • Press/Video,

    Sparrows Capital’s Yariv Haim in Beyond!’s Top 10 Most Influential CEOs to Watch Out For in 2021.

    June 17, 2021

    Investment space is witnessing a huge transformation from the last few years. Yariv Haim, Founder and CEO of Sparrows Capital Limited, has always been passionate about changing things for the better. “At Sparrows Capital, I enjoy working...

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  • Press/Video,

    The Times – Mark Northway: Cut costs: be your own fund manager

    May 30, 2021

    Only a few stock-pickers generate better long-term returns than the broader stock market, which is why many investors decide that if you can’t beat the market, you may as well join it. They do it...

    Read More
  • Press/Video,

    The Times – Mark Northway – Is a bitcoin crash coming?

    May 14, 2021

    The price of cryptocurrencies is not underpinned by any intrinsic value – it is determined by one thing: confidence.

    Read More
  • Press/Video,

    Wealth Magazine – Mark Northway: All that glitters – Bitcoin

    May 13, 2021

    Sparrows Capital's Mark Northway believes that this latest volte-face by Elon Musk serves to support the argument that Bitcoin should have a special place next to ‘speculative’ in the dictionary. “There is an assumption that...

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  • Uncategorized,

    TEBI – Larry Swedroe: How does investor sentiment affect stock and fund retuns?

    April 16, 2021

    Does investor sentiment predict overpriced or underpriced stock markets? Larry Swedroe reviews the evidence and concludes as follows: "The lesson for investors is to avoid being a noise trader. Don’t get caught up in following the herd...

    Read More
  • Press/Video,

    Investment Week – Mark Northway: Why ESG does not qualify as a factor yet

    April 15, 2021

    Sparrows Capital Limited's Mark Northway looks at the basis of factor investing and asks the key question: is ESG a factor or a filter?

    Read More
  • Press/Video,

    CIO interview – it’s all about me!

    April 13, 2021

      Sparrows Capital Limited's Yariv Haim speaks to Emily Aldrich about his motivation and drivers, and about what it's like to lead Sparrows Capital through its process of innovation.

    Read More
  • Newsletters, Sparrows Papers,

    A Bird’s Eye View – The Logic of Holding Fixed Income

    March 29, 2021

    The logic of holding fixed income in your portfolio   At $18 trillion and counting, the huge glut of global debt offering a negative yield is making fixed income look particularly unappealing.   Why, the...

    Read More
  • Press/Video,

    Sparrows in the Press: Beware the ESG momentum trade

    March 26, 2021

      Mark Northway, Investment Manager at Sparrows Capital, shares his thoughts about the momentum behind ESG investing and reminds investors to keep a cool head following a year of strong returns.

    Read More
  • Sparrows Papers,

    Responsible Investing using Exchange Traded Funds

    January 26, 2021

      As the focus on responsible investing has grown, so the incorporation of ESG and SRI factors into investment strategies has been gathering pace over the last decade, supported and encouraged by governments and non-governmental...

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  • Press/Video,

    COMING SOON — A DARWINIAN CULL OF ACTIVE MANAGEMENT

    January 5, 2021

    Alpha is elusive We know that alpha is elusive and that finding managers that can consistently deliver alpha is a very difficult thing to do. But in the upwards moving stock market we have seen...

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  • Newsletters, Sparrows Papers,

    A Bird’s Eye View – Great Expectations Management for 2021

    January 5, 2021

    It is always hard to know what will happen with markets. We’re not in the business of offering predictions. Instead, like some of the successful sovereign and endowment funds whose approach we aspire to, we...

    Read More
  • Academic Papers, Behavioural Finance, Factor Investing, Modern Portfolio Theory, Newsletters, Passive Investing, Sparrows Papers, White Papers,

    Mark Polson interviews Professor Elroy Dimson

    November 24, 2020

    Elroy is an acknowledged expert on long-horizon factor investing and on responsible investing, both of which have featured heavily in the press throughout the pandemic. He is also consultant to the board of Sparrows Capital....

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  • Press/Video,

    Sparrows in the Press: Weighing up the true costs of ESG

    June 15, 2020

    ETF Insight There are long-standing arguments over the lack of consensus in ESG filtering. In this article Mark Northway points to research from Elroy Dimson, Marsh and Staunton in the recent Credit Suisse Investment Yearbook...

    Read More
  • Press/Video,

    Sparrows in the Press: Model Portfolio Service – the cost of delivery for advice firms

    June 8, 2020

    IFA Magazine. John Bennett looks at the anachronism of asset based fees for platform-based model portfolios. Model portfolios are a very efficient way of delivering a diversified portfolio mix for every type of client attitude...

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  • Press/Video,

    Sparrows in the Press: ETF growth stunted by platforms

    June 4, 2020

      Speaking on the fourth of ETF Stream’s webinar series, ETF Ecosystem Unwrapped, entitled Capital Markets: Making the ecosystem tick, Backreedy has bemoaned the major platforms’ decision to not upgrade their technology to incorporate ETFs.

    Read More
  • Press/Video,

    Live Webinar: Capital markets: Making the ecosystem tick.

    June 1, 2020

    Sparrows Capital's Raymond Backreedy joins ETFStream's Tom Eckett, JPMorgan Asset Management's Thomas Stevens and UniCredit's Paolo Giulianini in the fourth webinar in the ETF Ecosystem Unwrapped series this Wednesday, 3rd June at 11am BST. The...

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  • Press/Video,

    Sparrows in the Press – Retirement Planner – The advantages of a predefined investment strategy

    May 7, 2020

    by Jenna Brown Raymond Backreedy: Humans are naturally cautious about making long term commitments. We value flexibility in the face of an unknown future. Common sense tells us that keeping all options open is better...

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  • Press/Video,

    Sparrows in the Press – Lack of standardisation in daily ETF holdings disclosure thrown into spotlight

    May 4, 2020

    ETFStream. The record ETF trading volumes seen amid the coronavirus turmoil has highlighted issues with the lack of standardisation in the publication of an ETF’s daily holdings. But Mark Northway questions why a buy-side investor...

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  • Press/Video,

    Press Release – Sparrows Capital partners with Intelliflo on SCore MPS

    May 4, 2020

    Delivering a low-cost capped fee model portfolio service to advisers LONDON, 4th April 2020 – Following the launch last month of SCore MPS, Sparrows Capital’s low-cost, evidence-based, capped-fee model portfolio service, Sparrows Capital has partnered...

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  • Press/Video,

    Sparrows in the Press – Money Marketing – Intelliflo launches first third-party model portfolios

    May 4, 2020

    by Daniela Esnerova Back office provider Intelliflo is set to launch portfolios from Sparrows Capital on its new Model Portfolio Service, Money Marketing can reveal. Sparrows will introduce 11 model portfolios priced at 0.08 per...

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  • Newsletters, Sparrows Papers,

    Bird’s Eye View – The benefits of a predefined investment process

    April 15, 2020

    In this issue of our Bird's Eye View, Raymond reviews the experience of the first quarter in 2020 and examines the benefits to investors of a rule-based investment process.  

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  • Press/Video,

    Sparrows in the Press – Professional Adviser – Claire Tyrrell

    February 20, 2020

    London-based DFM Sparrows Capital has launched a platform-based model portfolio service for advisers, becoming one of the first fund houses to combine a low percentage-based fee with a low cap. Sparrows has released its SCore...

    Read More
  • Press/Video,

    Press Release – SCore MPS from Sparrows Capital

    February 20, 2020

    Sparrows Capital has today launched an evidence-based model portfolio service, SCore MPS. This is an evidence-based, adviser only offering, initially available on a discretionary basis. Pricing is 0.1% per annum, capped at £20 per month...

    Read More
  • Newsletters, Sparrows Papers,

    Bird’s Eye View – The Inherent Problems with Forecasting

    February 5, 2020

    Alistair takes an irreverent look at the track record of some well known market forecasters.

    Read More
  • Newsletters, Sparrows Papers,

    Bird’s Eye View – Dec 2019 – Shifting Currents – The benefits of diversification.

    December 9, 2019

    Yariv & Alistair review the benefits of diversification against the background of recent market disruptions.

    Read More
  • Press/Video,

    ‘Not relevant to investors’: ETFStream Product Panel on WisdomTree’s bitcoin ETP

    December 4, 2019

    ETFStream - Scott Longley Cryptocurrencies are speculative assets, not investments. They are not relevant to investors, and it is not clear that they ever will be. It is not helpful for providers to be using...

    Read More
  • Press/Video,

    Saudi ETF flows point to wider index inclusion worries

    December 4, 2019

    ETFStream - Scott Longley The Aramco offering is an example of the issues faced by passive investors in emerging market ETFs. Given the increasing focus by both investors and regulators on environmental considerations, automatic investment...

    Read More
  • Press/Video,

    BMO GAM’s European exit

    November 28, 2019

    ETFStream by Scott Longley The BMO product suite, and in particular the short-dated high grade corporate global bond ETFs tracking the Bloomberg Barclays Global Corporate 1-3 Very Liquid Hedged to GBP index was certainly a...

    Read More
  • Press/Video,

    ‘I would rather bet on the Gold Cup’: Product Panel on GraniteShares’ single stock ETPs

    November 11, 2019

    Single-company leveraged ETPs compete directly with CFDs. ETPs have the advantage of being exchange traded, which suggests the possibility of a liquid market. The ability to sell to a third-party and the engagement of a...

    Read More
  • Press/Video,

    Larry Swedroe – Q3 2019 hedge fund performance update

    October 29, 2019

    Hedge funds entered this year coming off their 10th straight year of trailing the return of the S&P 500 Index. Over the 10-year period ending December 2018, they underperformed every single major equity asset class...

    Read More
  • Newsletters, Sparrows Papers,

    Bird’s Eye View – Sept 2019 – Currency Matters

    September 24, 2019

      Alistair Meadows looks at Trump's options for stemming the inexorable rise of the US Dollar.

    Read More
  • Press/Video,

    Sparrows in the Press: ETF Insight: Is self-indexing the solution to index providers’ high fees?

    September 23, 2019

    Mark Northway comments that as ETF expense ratios head ever lower, it is natural for investors to start to wonder what part of the cost of following a given index is the royalty paid across...

    Read More
  • Press/Video,

    Sparrows in the Press – ETFStream – The Passive Tipping Point

    August 22, 2019

    ETF Insight: To parity and beyond – what happens when we reach the passive tipping point? Mark suggests that ‘peak passive’ will be reached when a sufficiently large opportunity has opened up for price makers...

    Read More
  • Press/Video,

    Sparrows in the Press: ETFStream – Pension fund attitudes to ETFs evolving despite hurdles

    August 2, 2019

    Data from CREATE Research earlier this summer suggests that though the changing nature of pension fund ETF usage is gradual, it is happening and is on the increase. Mark Northway predicts we will see more...

    Read More
  • Press/Video,

    Sparrows in the Press: WM – The red flags signalling a fund manager may have lost it

    July 10, 2019

    Mark Northway,  Sparrows Capital Like racehorses, few fund managers persistently outperform. Occasionally, a champion does appear, set apart from the field and beating the odds. Betting on these winners can be lucrative, but punters do...

    Read More
  • Press/Video,

    Sparrows in the Press – Franklin Templeton India ETF

    July 4, 2019

    ETFS Product Panel: Franklin Templeton India ETF The Franklin Templeton India ETF is a useful tool for managing tactical exposure to India over the short term, but perhaps not ideal as a strategic portfolio holding.

    Read More
  • Press/Video,

    Sparrows in the Press – Mark Northway discusses the role of active management in relation to Smart Beta

    July 3, 2019

    ETF Insight: Should smart beta be the preserve of active? Mark Northway argues that factor tilts are expected to attract a premium over the long-term, and no evidence has been presented to date to suggest...

    Read More
  • Newsletters, Sparrows Papers,

    Bird’s Eye View – June 2019 bis

    June 20, 2019

    Do active managers outperform passive managers in bear markets? Ray explores the persistent claim that active management outperforms in bear markets, and finds that the evidence suggests otherwise.

    Read More
  • Newsletters, Sparrows Papers,

    Bird’s Eye View – June 2019

    June 11, 2019

    Welcome to our Bird’s Eye View, in which Mark looks at the implications of the Woodford Equity Income Fund debacle.

    Read More
  • Press/Video,

    Sparrows in the Press – Political issues overshadow MSCI’s A-Shares inclusion

    May 28, 2019

    Part of the responsibility of index providers is an assessment of the rule of law, of investor protections and of governance practices – all areas in which China remains notably deficient. Mark Northway points to...

    Read More
  • Newsletters, Sparrows Papers,

    Bird’s Eye View – January 2019

    January 15, 2019

    ESMA report on the cost and performance of investment products Yariv reviews the findings of this recently published report which again highlights issues with fee levels and value for money across the asset management industry....

    Read More
  • Press/Video,

    Sparrows in the Press – Robin Powell’s second interview with Sparrow’s Capital’s Professor Elroy Dimson

    December 20, 2018

    ELROY DIMSON ON ESG AND WHETHER TO INVEST IN COLLECTIBLES In his second interview with Sparrows Capital's Professor ELROY DIMSON Robin Powell explores Elroy's more specialised academic interests, including ethical investing, and the wisdom (or...

    Read More
  • Press/Video,

    Sparrows in the Press – Robin Powell interviews Sparrow’s Capital’s Professor Elroy Dimson

    December 20, 2018

    ELROY DIMSON ON THE MOST IMPORTANT LESSON FROM MARKET HISTORY The importance of diversification is clear within markets, but across markets it is also worthwhile. And it’s easier today than it was 100 years ago...

    Read More
  • Newsletters, Sparrows Papers,

    Bird’s Eye View – Keep Calm And Carry On

    December 20, 2018

    In this edition Raymond Backreedy looks at recent market volatility and advocates a steady hand.

    Read More
  • Press/Video,

    Sparrows in the Press: ETFStream – an ESG polemic

    November 15, 2018

    In response to BlackRock iShares recent high profile move into ESG funds, Mark Northway from Sparrows Capital suggests that naming conventions on ESG matter – and that BlackRock are confusing matters with a lack of...

    Read More
  • Recommended Books,

    Bedtime Reading

    October 15, 2018

    Behavioural Investing: A Practitioner's Guide to Applying Behavioural Finance James Montier Behavioural investing seeks to bridge the gap between psychology and investing. All too many investors are unaware of the mental pitfalls that await them....

    Read More
  • Sparrows Papers, White Papers,

    Sustainable Investing – A White Paper

    September 24, 2018

    Sustainable investing is a growing focus for investors, who are increasingly looking to their money to do something positive at the same time as generating an investment return. The discipline goes beyond the traditional asset...

    Read More
  • Press/Video,

    Sparrows Capital announces Strategic Partnership

    September 24, 2018

    Sparrows Capital is delighted to announce its strategic partnership with Robin Powell's Adviser 2.0 platform. Adviser 2.0, is a truth seeking blog. It is based on a belief in evidence-based investing and on the premise...

    Read More
  • Press/Video,

    Larry Swedroe – debunking popular myths

    July 25, 2018

    A comprehensive review by Larry Swedroe of the disingenuous claims made by some market participants about the dangers of passive investing. Worth a read!

    Read More
  • Press/Video,

    Yariv and Elroy – WM Centrefolds!

    June 28, 2018

    Yariv Haim and Elroy Dimson feature as the cover story for Wealth Manager Magazine. Yoosof Farah interviews Sparrows Capital and explores the company's history, philosophy and unique business proposition.

    Read More
  • Sparrows Papers, White Papers,

    Live Portfolio Benchmarking

    June 28, 2018

    One of Sparrows Capital’s consistent themes is the benefit to investors of creating a rule-based, low-cost control account, representing the strategic asset allocation, to sit alongside active portfolio components. This concept provides a real life,...

    Read More
  • Newsletters, Sparrows Papers,

    Bird’s Eye View – In the Land of the Blind

    May 10, 2018

    Yariv takes a wry look at the philosophical issues affecting investment behaviour. The universe has a funny sense of humour!

    Read More
  • Press/Video,

    Sparrows in the Press: Evening Standard – Predicting is difficult

    March 13, 2018

    The Evening Standard's Simon English looks at the difficulties of predicting the future, and the issues faced by investors even where their intuition is correct. An army of City forecasters — bankers, analysts, fund managers and...

    Read More
  • Academic Papers, Behavioural Finance,

    Prospect theory: an analysis of decision under risk

    March 8, 2018

    Kahneman, D., and A. Tversky (1979), “Prospect theory: an analysis of decision under risk”, Econometrica 47:263−291. This paper presents a critique of expected utility theory as a descriptive model of decision making under risk, and...

    Read More
  • Academic Papers, Behavioural Finance,

    A Survey of Behavioral Finance

    March 8, 2018

    Barberis, N. and Thaler, R., 2003, "A Survey of Behavioral Finance," Handbook of the Economics of Finance, Chapter 18, pp 1051-1121. Behavioral finance argues that some financial phenomena can plausibly be understood using models in...

    Read More
  • Press/Video,

    Sparrows in the Press: Express – Monetary Methadone

    March 7, 2018

    Mark Northway of Sparrows Capital warns the global financial system is in virgin territory. He told Express.co.uk: “As global growth and inflation start to raise their head, the central banks are starting to want to...

    Read More
  • Press/Video,

    Sparrows in the Press: Express – The financial crash: 10 years on

    March 6, 2018

    Ten years to the day since Northern Rock was nationalised and the fragile state of the UK’s financial system was exposed, Express.co.uk spoke to to a number of finance experts on whether the lessons of 2008...

    Read More
  • Newsletters, Sparrows Papers,

    Bird’s Eye View – The Cost of Waiting on the Sidelines

    February 5, 2018

    Raymond Backreedy discussed the difficulties of picking a market entry point - and the very real cost of being uninvested while doing so.

    Read More
  • Press/Video,

    Sparrows in the Press: Express – Fund managers add just 16p for every £100 invested

    January 30, 2018

    Analysis carried out by CEM Benchmarking for the FT shows that most of the value created by investing people’s pensions is simply returned to the asset management industry. The research concludes that “active” fund managers pocket...

    Read More
  • Newsletters, Sparrows Papers,

    Bird’s Eye View – December 2017

    December 21, 2017

    The Price is Right! In this issue of our newsletter Yariv Haim takes a walk down memory lane...   

    Read More
  • Press/Video,

    Goldstein on Gelt Show – Doug Goldstein speaks with Yariv Haim

    December 19, 2017

    Does evidence-based investing yield positive results? There is more than one way to skin a cat, and there are multiple investment strategies you can apply to your savings. But how do you know which strategy...

    Read More
  • Newsletters, Press/Video, Sparrows Papers,

    Sparrows Capital announces Investment Suite for Trustees

    December 5, 2017

    An evidence-based approach to trustees' fiduciary responsibility   London, December 2017: Sparrows Capital, the evidence-based asset manager, has launched its new investment suite specifically designed for trustees looking to preserve and enhance the value of...

    Read More
  • Press/Video,

    Sparrows in the Press: Evening Standard, Anthony Hilton: Investing and the vital need to keep one’s cool

    November 10, 2017

    Anthony Hilton: With stock markets hitting new highs here and in the US, it is a good time to ask how many investors are actually making the money they could be? Booming markets suggest profits...

    Read More
  • Newsletters, Sparrows Papers,

    Bird’s Eye View – November 2017

    November 9, 2017

    In this issue of our newsletter Yariv Haim shares his insights from the Brexit experience so far.    

    Read More
  • Press/Video, Sparrows Papers,

    Sparrows in the Press: Charities Management – The impact of investment skill

    October 16, 2017

    The reality of the impact of investment skill Mark Northway looks at whether investment performance for charities is really generated by the skill of the fund manager and how passive strategies contribute to charity portfolios.

    Read More
  • Newsletters, Press/Video, Sparrows Papers,

    The Public Employees Retirement System of Nevada (NVPERS) – Top1000Funds.com

    September 26, 2017

    The Public Employees Retirement System of Nevada (NVPERS) follows an approach which will sound remarkably familiar to our readers. The fund adopts a core and satellite approach to investing, with the 80% core portfolio expressed...

    Read More
  • Newsletters, Sparrows Papers,

    Bird’s Eye View – September 2017

    September 6, 2017

    Insights from the FCA Asset Management Market Study - Final Report The UK's Financial Conduct Authority recently published its final report on the state of the asset management industry, disappointing many spectators by softening some...

    Read More
  • Press/Video, Sparrows Papers,

    Sparrows in the Press: Evidence-Based Investing – Money Observer

    September 5, 2017

    Evidence-based investing does away with emotive decision making and focuses on robust risk management, says Danielle Levy.   Selling out of poorly performing investments during a market sell-off is one of the most common mistakes investors...

    Read More
  • Newsletters, Sparrows Papers,

    Bird’s Eye View – August 2017

    August 21, 2017

    FCA Asset Management Market Study – Final Report The UK’s Financial Conduct Authority recently published its final report on the state of the asset management industry. Yariv Haim, CEO of Sparrows Capital, examines the implications...

    Read More
  • Press/Video, Uncategorized,

    Sparrows in the Press – Citywire

    August 11, 2017

    Seven wealth managers share their summer reads - by Hamza Ali Mark Northway,  Sparrows Capital Winning the Loser’s Game by Charles D. Ellis A required read at Sparrows Capital by one of the most respected...

    Read More
  • Press/Video, Recommended Books,

    Financial Market History – David Chambers and Elroy Dimson

    July 24, 2017

      A recent project funded by the CFA Institute Research Foundation was the writing and publication of Financial Market History: Reflections on the Past for Investors Today. Financial Times senior investment commentator John Authers praised this...

    Read More
  • Press/Video,

    Transparency Task Force seeks progressive asset managers

    July 7, 2017

    The Transparency Task Force (TTF) has launched an exclusive new community for progressive asset managers. The purpose of the community is to facilitate collaboration between asset managers that have a more enlightened and progressive approach....

    Read More
  • Newsletters, Sparrows Papers,

    Bird’s Eye View – June 2017

    June 5, 2017

    Evidence based portfolio design Can passive become the new active? Yariv Haim reviews lessons learned from active and passive investment approaches, and proposes an enhanced evidence-based portfolio design on the basis of his findings.

    Read More
  • Press/Video,

    Swedroe: Top Firms Fail To Beat Passive

    April 26, 2017

    Another intriguing article from Larry Swedroe. Larry compares the performance of two of the top US active investment firms,  SEI and Russell, to the rules-based performance of the equivalent fund from Dimensional Fund Advisors (DFA)....

    Read More
  • Press/Video,

    Sparrows Capital appoints Raymond Backreedy to its senior management team.

    April 25, 2017

    Raymond Backreedy Raymond will be responsible for investment policy and for portfolio design and management. He will also be providing risk oversight. His experience of constructing and managing rules-based multi asset portfolios will further broaden the...

    Read More
  • Newsletters, Sparrows Papers,

    Bird’s Eye View – April 2017

    April 20, 2017

    Mark Northway looks at the rise of populist movements and the growing prominence of political risks.

    Read More
  • Press/Video,

    SPIVA Survey Continues Passive Winning Streak

    April 19, 2017

    The SPIVA Scorecards provide powerful evidence on the persistent failure of active management’s ability to generate alpha (Larry Swedroe)

    Read More
  • Press/Video,

    How today’s two biggest investment fads are setting up the next crash

    April 4, 2017

    John Stepek makes a strong point about the extension of duration in the sector which can magnify any correction in the Fixed Income markets. Low interest rates are further addressed in our 2016 white paper...

    Read More
  • Press/Video,

    A clinical test of the 5 most popular Smart Beta factors

    March 13, 2017

    The FT's John Authers looks at the 458 claimed factor sightings, and effectively dismisses most as snake oil. "If treated like new drugs, most would never be cleared for sale to the public"​ He goes on...

    Read More
  • Newsletters, Sparrows Papers,

    Bird’s Eye View – March 2017

    March 9, 2017

    Buffett's Bet! Mark Northway reviews Warren Buffett’s illuminating annual letter to Berkshire Hathaway’s shareholders.

    Read More
  • Newsletters, Sparrows Papers,

    Bird’s Eye View – December 2016

    December 31, 2016

      Mark Northway delves into the FCA Asset Management Market Study and discovers that the regulator's findings represent a welcome vindication of Sparrows Capital's beliefs and philosophy.

    Read More
  • Newsletters, Sparrows Papers,

    Bird’s Eye View – November 2016

    November 30, 2016

    Most investors know that their portfolio should be diversified, but don’t understand what that really means, or why. Investors often misunderstand—and therefore misapply—the concept. That can leave them with more risk than necessary, or with...

    Read More
  • Newsletters, Sparrows Papers,

    Bird’s Eye View – September 2016

    September 30, 2016

    Coming back from their holiday, the Johnson family was disappointed. Their summer house had been under renovation for the past 6 months, and although it was supposed to be ready three weeks ago, they hadn’t...

    Read More
  • Newsletters, Sparrows Papers,

    Bird’s Eye View – August 2015

    August 30, 2016

    When panic selling hits a market, or even worse when a market is shut down for a long period of time to deal with a crisis or market dislocation events, we should always be monitoring...

    Read More
  • Newsletters, Sparrows Papers,

    Bird’s Eye View – June 2016

    June 30, 2016

    It has been two years since we opened the doors at Sparrows Capital. During this time we have looked to build a constructive dialogue to earn your trust and to form the basis of a...

    Read More
  • Sparrows Papers, White Papers,

    To Beta or Not To Beta – White Paper

    June 22, 2016

    On March 25th 2016 the Financial Times published an article entitled “Smart beta not quite as clever as marketed”. The full article can be found at: http://on.ft.com/1pLRBle .   The author, John Authers, raises questions...

    Read More
  • Press/Video,

    Spreading its wings – Sparrows Capital on bringing its investment approach to more families

    June 17, 2016

    Article published on thewealthnet

    Read More
  • Sparrows Papers, White Papers,

    Investing in a Zero Interest Rate World – A White Paper

    May 31, 2016

    A Zero Interest Rate World Fahd Rachidy explores the theoretical and practical implications of the current low / zero rate interest environment What is fixed income pricing telling us about market expectations for asset prices?...

    Read More
  • Newsletters, Sparrows Papers,

    Bird’s Eye View – March 2016

    March 31, 2016

    John had come to the clear conclusion that he would be better off with a passive investment manager. He would have someone focused entirely on his needs, not on gambling his money on risky speculation....

    Read More
  • Newsletters, Sparrows Papers,

    Bird’s Eye View – January 2016

    January 30, 2016

    Bird's Eye View. January 2016. Months later John was still reading and trying to understand what the Efficient Market Hypothesis was, and what is an asset allocation. He now knew that ETF selection requires an...

    Read More
  • Recommended Books,

    Triumph of the Optimists (Elroy Dimson, Paul Marsh, & Mike Staunton)

    January 17, 2016

    Investors have too often extrapolated from recent experience. In the 1950s, who but the most rampant optimist would have dreamt that over the next fifty years the real return on equities would be 9% per...

    Read More
  • Academic Papers, Factor Investing,

    Returns to buying winners and selling losers: implications for stock market efficiency

    January 17, 2015

    Jegadeesh N., and Titman S., 1993 “Returns to buying winners and selling losers: implications for stock market efficiency,” Journal of Finance, vol. 48 This paper documents that strategies which buy stocks that have performed well...

    Read More
  • Academic Papers, Factor Investing,

    Common Risk Factors in the Returns on Stocks and Bonds

    January 17, 2015

    Fama E., and French K., 1993. “Common Risk Factors in the Returns on Stocks and Bonds”. Journal of Financial Economics, vol 33, no. 1, pages 3-56

    Read More
  • Academic Papers, Factor Investing,

    The Strategic and Tactical Value of Commodity Futures

    January 17, 2015

    Erb C., and Harvey C., 2006, “The Strategic and Tactical Value of Commodity Futures”, Financial Analysts Journal, vol 62, no. 2, pages 69-97

    Read More
  • Academic Papers, Passive Investing,

    “UK mutual fund performance: Skill or luck?” Journal of Empirical Finance

    January 17, 2015

    Cuthbertson K., Nitzsche D., and O’Sullivan D., 2008, “UK mutual fund performance: Skill or luck?” Journal of Empirical Finance”, vol 15, no. 4, pages 613-633

    Read More
  • Academic Papers, Passive Investing,

    Hedge Funds: Risk and Return

    January 17, 2015

    Burton G. Malkiel and Atanu Saha, 2005 “Hedge Funds: Risk and Return” Financial Analysts Journal, vol. 61, no. 6, pages 80-92

    Read More
  • Academic Papers, Passive Investing,

    False Discoveries in Mutual Fund Performance: Measuring Luck in Estimated Alphas

    January 17, 2015

    Barras L., Scaillet O. & Wermers R., 2010. "False Discoveries in Mutual Fund Performance: Measuring Luck in Estimated Alphas," Journal of Finance, vol. 65, no. 1, pages 179-216

    Read More
  • Academic Papers, Modern Portfolio Theory,

    Policy Portfolios and Rebalancing Behavior

    January 17, 2015

    Leibowitz M.L., and Bova A., 2011, “Policy Portfolios and Rebalancing Behavior”, The Journal of Portfolio Management, vol. 37, no. 2, pages 60-71

    Read More
  • Academic Papers, Modern Portfolio Theory,

    Best Practices for Portfolio Rebalancing

    January 17, 2015

    Jaconetti C. M., Kinniry F.M., Zilbering Y., 2010, “Best Practices for Portfolio Rebalancing”, Vanguard Research

    Read More
  • Academic Papers, Modern Portfolio Theory,

    The Importance of Asset Allocation

    January 17, 2015

    Ibbotson R., 2010, “The Importance of Asset Allocation”, Financial Analysts Journal, vol. 66, no. 2, pages 18-20

    Read More
  • Academic Papers, Modern Portfolio Theory,

    Diversification Returns and Assets Contributions

    January 17, 2015

    Booth D. G., and Fama E., 1992 “Diversification Returns and Assets Contributions” Financial Analysts Journal, vol 48, no. 3, pages 26-32

    Read More
  • Academic Papers, Modern Portfolio Theory,

    Capital Market Equilibrium with Restricted Borrowing

    January 17, 2015

    Black F., 1972. “Capital Market Equilibrium with Restricted Borrowing.” Journal of Business, vol. 4, no. 3, pages 444–455

    Read More
  • Academic Papers, Modern Portfolio Theory,

    Diversification, Rebalancing, and the Geometric Mean Frontier

    January 17, 2015

    Bernstein W. J., and Wilkinson, D. J., 1997, “Diversification, Rebalancing, and the Geometric Mean Frontier”, unpublished paper

    Read More
  • Recommended Books,

    A Random Walk Down Wall Street (Burton G. Malkiel)

    January 17, 2015

    A Random Walk Down Wall Street has long been established as the first book to purchase when starting a portfolio. This new edition features fresh material on exchange-traded funds and investment opportunities in emerging markets;...

    Read More
  • Recommended Books,

    The Great Mutual Fund Trap (Gregory Baer and Gary Gensler)

    January 17, 2015

    The Great Mutual Fund Trap shows that the average mutual fund consistently underperforms the market, and that strategies for picking above-average funds — everything from past performance to expert rankings — are useless. Picking individual...

    Read More
  • Recommended Books,

    Predictably Irrational (Dan Ariely)

    January 17, 2015

    In this newly revised and expanded edition of the groundbreaking New York Times bestseller, Dan Ariely refutes the common assumption that we behave in fundamentally rational ways. From drinking coffee to losing weight, from buying...

    Read More
  • Recommended Books,

    Fooled by Randomness (Nassim Nocholas Taleb)

    January 17, 2015

    This book is about luck–or more precisely, about how we perceive and deal with luck in life and business. Set against the backdrop of the most conspicuous forum in which luck is mistaken for skill–the...

    Read More
  • Recommended Books,

    All About Asset Allocation (Richard A. Ferri, CFA)

    January 17, 2015

    Trying to outwit the market is a bad gamble. If you're serious about investing for the long run, you have to take a no-nonsense, businesslike approach to your portfolio. In addition to covering all the...

    Read More
  • Recommended Books,

    Value Averaging (Michael E. Edleson)

    January 17, 2015

    Michael Edleson first introduced his concept of value averaging to the world in an article written in 1988. He then wrote a book entitled Value Averaging in 1993, which has been nearly impossible to find—until...

    Read More
  • Recommended Books,

    The Intelligent Asset Allocator (William Bernstein)

    January 10, 2015

    This book includes time-tested techniques - safe, simple, and proven effective - for building your own investment portfolio. "As its title suggest, Bill Bernstein's fine book honors the sensible principles of Benjamin Graham in the...

    Read More
  • Recommended Books,

    Asset Management (Andrew Ang)

    January 10, 2015

    Stocks and bonds? Real estate? Hedge funds? Private equity? If you think those are the things to focus on in building an investment portfolio, Andrew Ang has accumulated a body of research that will prove...

    Read More

Important Information

Material on this site is issued in the United Kingdom (“UK”) by Sparrows Capital Limited (“Sparrows”) which is authorised and regulated in the UK by the Financial Conduct Authority (“FCA”).

Use of Information and Material

The information contained on this site (including any expression of opinion or forecast) has been obtained from, or is based on, sources believed by Sparrows and its associated companies to be reliable, but is not guaranteed as to its accuracy or completeness. This does not exclude or restrict any duty or liability that Sparrows has to its customers under the regulatory system in the United Kingdom. This Site and the information herein is for general information purposes only.   Your eligibility for particular products and advisory or management services is subject to local law and regulation.

Risk Factors

Past performance is no indication of future performance. The value of investments may fall as well as rise and investors may not get back the full amount invested. Changes in rates of foreign exchange may cause the value of investments to go up or down.

No Advice, Offers or Solicitations

The information and materials in this Site should not be construed as providing tax, legal or investment advice. In addition, they do not constitute an offer or solicitation, or an offer to sell, shares of any funds or any advisory or management service.. The type of securities mentioned may not be suitable for everyone.

USERS ARE URGED TO BASE THEIR INVESTMENT DECISIONS UPON A THOROUGH INVESTIGATION AND TO OBTAIN ALL NECESSARY PROFESSIONAL ADVICE.

Material Interests

Staff and/or directors of Sparrows may have holdings in the investment funds referred to on this site.

United Kingdom Stewardship Code

The Stewardship Code (the “Code”) was developed from the Walker Review on Corporate Governance in the UK and aims to enhance the quality of engagement between investors (and investment managers) and UK listed companies.

Sparrows supports the principles enshrined in the Code.  Although the Code is voluntary, the FCA requires Sparrows to include on this website a disclosure about its commitment to the Code or, where it does not so commit, its alternative strategy.  The FCA and the Financial Reporting Council have acknowledged that certain aspects of the Code are not directly relevant to all investment firms.

Sparrows invests almost exclusively in rule-based ETFs and index funds in order to capture market returns across all asset classes globally. Sparrows does not directly invest in shares or bonds issued by UK listed companies and therefore has no direct interaction with the management of such companies and does not enjoy voting rights in relation to such companies. For this reason, the Code is not directly relevant to Sparrows and it is not practical for Sparrows to implement a policy of direct engagement.

Sparrows’ due diligence prior to investing in an ETF or index fund does, however, take specific account of the fund manager’s own commitment to the Code (or equivalent depending on jurisdiction) and the nature of their engagement and voting policies with regard to companies in which their funds invest.

Given both Sparrows’ and the ETF or index fund provider’s index tracking requirements, there is very limited scope for stewardship through selective allocation or de-allocation decisions. For this reason, Sparrows’ analysis focuses on stewardship through engagement and through the exercise of voting rights.

Copyright, Trademarks and Other Rights

Copyright and trademarks and all similar rights in this site are owned by Sparrows,  or relevant third-party content providers. You may use the information on this site and reproduce it in hard copy for your personal reference only. Such information may not otherwise be reproduced, distributed, stored in a data retrieval system or transmitted, in any form or by any means – electronic, mechanical, photocopying, recording or otherwise – without the prior written permission of Sparrows.

Complaints

Any complaints about the Sparrows service or website should be directed to:

The Compliance Officer, Sparrows Capital Limited, Office 7, 35-37 Ludgate Hill, London, EC4M 7JN

If we are unable to resolve the matter to your satisfaction, you may have access to the Financial Ombudsman Service. The Financial Ombudsman Service’s website is at http://www.financial-ombudsman.org.uk/

 

Pillar 3 Disclosures

 

Background

These are the Pillar 3 disclosures made by Sparrows Capital Limited (“Sparrows”) in accordance with the UK Financial Conduct Authority’s (“FCA”) Prudential Sourcebook for Banks, Building Societies and Investment Firms (“BIPRU”).

The European Union Capital Requirements Directive (“CRD”) created a regulatory capital framework consisting of three ‘pillars’ namely:

Pillar 1 – sets out the minimum capital requirements that firms are required to meet;

Pillar 2 – requires firms to take a view on whether additional capital should be held against capital risks not covered by Pillar 1; and

Pillar 3 – requires firms to publish certain details of their risks, capital and risk management process.

Disclosure policy

The rules in BIPRU 11 provide that Sparrows may omit one or more of the required disclosures if it believes that the information is immaterial. Materiality is based on the criteria that the omission or misstatement of material information would be likely to change or influence the assessment or decision of a user relying on that information for the purposes of making economic decisions. Where Sparrows considers a disclosure to be immaterial, this will be stated in the relevant section.

Sparrows is also permitted to omit one or more of the required disclosures where it believes that the information is regarded as proprietary or confidential. Proprietary information is that which, if it were shared, would undermine Sparrows’ competitive position. Information is considered to be confidential where there are obligations binding Sparrows to confidentiality with its clients and counterparties.

Where Sparrows has omitted information for any of the above reasons, a statement explaining this will be provided in the relevant section.

Unless stated as otherwise, all figures contained in this disclosure are based on Sparrows’ audited annual reports for the year ending 31 December 2022.

Frequency

These Pillar 3 disclosures will be reviewed on an annual basis as a minimum. The disclosures will be published as soon as is practical following the finalisation of Sparrows’  Internal Capital Adequacy and Risk Assessment (“ICARA”) and its annual accounts.

Verification

The information contained in these disclosures has not been audited by Sparrows’ external auditors and does not constitute any form of financial statement.

Publication

Sparrows’ Pillar 3 disclosures are published on its website.

Scope and application of CRD requirements

These disclosures are made in respect of Sparrows, a BIPRU firm authorised and regulated by the FCA, providing financial advice and discretionary investment management services.

Risk management objectives and policies

Sparrows’ risk management policy reflects the FCA requirement that it must manage a number of different categories of risk. These include: liquidity; credit; interest rate; market; and operational risks.

  1. Liquidity risk

Sparrows manages all cash and borrowing requirements to maximise potential interest income whilst ensuring it has sufficient liquid resources to meet the continued operating needs of its business. This is supported by a robust budgeting and forecasting process which has the full involvement of the senior management team.

  1. Credit risk

The main credit risk for Sparrows relates to income from fees, the risk being that a client does not pay amounts due for services provided by Sparrows.  In most cases, quarterly management fees are charged to clients based on a percentage of the client’s assets under management.  Concentration risk is defined as the risk of loss of income through external changes having a disproportionate impact on overall income due to a reliance on revenue from certain sectoral, geographic areas and/or businesses.  Credit risk concentrations include significant exposure to an individual client or group of clients and credit exposures to clients in the same economic sector or geographic region.

A significant proportion of Sparrows’ income is received from clients that are part of the same group as Sparrows’ major shareholders.  This ongoing interest in the activities of Sparrows by the group mitigates the risk of the group jeopardising Sparrows’ income flow.

Sparrows is exposed to country risk as a number of clients are based in a non-European Economic Area country.  As these clients are all high net worth or ultra-high net worth long-term investors with spare capital invested in globally diversified liquid financial instruments, the risk of being unable to meet unforeseen financial needs and payment of Sparrows’ fees is low.

Based on the analysis of concentration risk, the risk of non-payment of fees has been assessed as minimal.

  1. Interest rate risk

Sparrows has no exposure to interest rate risk as it has no debt and no client cash deposits

  1. Market risk

The main market risk for Sparrows relates to falls in value of assets under management following a market downturn, which would lead to lower management fees. To mitigate its market risk, Sparrows regularly analyses various different economic scenarios to model the impact of economic downturns on its financial position.

  1. Operational risk

Operational risk is defined as the potential risk of financial loss or impairment to reputation resulting from inadequate or failed internal processes and systems, from the actions of people or from external events.

Major sources of potential operational risk include: Outsourcing of operations, IT security, internal and external fraud, implementation of strategic change and regulatory non-compliance.

Sparrows operates a robust risk management process which is regularly reviewed and updated by its Board. The Board formally reviews all significant risk issues at least annually as part of the ICARA.

All senior members of staff bear responsibility for internal controls and the management of business risk as part of their accountability to the Board.  All staff are responsible for identifying the risks surrounding their work, implementing controls over those risks and reporting areas of concern to their senior member of staff.

  1. Other risks

Sparrows operates a simple business model. Accordingly, many of the specific risks identified by the FCA do not apply. For example, it has no material outsourcing arrangements and does not hold any client assets.

Capital resources

Pillar 1 requirement

In accordance with the FCA rule GENPRU 2.1.45R (calculation of variable capital requirement for a BIPRU firm), Sparrows’ capital requirement has been determined as being its fixed overhead requirement and not the sum of its credit risk capital requirement and its market risk capital requirement.

The Pillar 1 capital requirement for Sparrows was £532,000 as at 31 December 2022.

Pillar 2 requirement

Sparrows’ overall approach to assessing the adequacy of its internal capital is set out in its ICARA report. The ICARA involves separate consideration of risks to Sparrows’ capital, combined with stress testing using scenario analysis. The level of capital required to cover risks is a function of impact and probability. Sparrows assesses impact by modelling the changes in its income and expenses caused by various potential risks over a 1-year time horizon. Probability is assessed subjectively. In addition, Sparrows has reviewed the outputs of its risk reviews to quantify any risks identified. This has identified a number of key business risks, which (having reviewed the guidance in BIPRU 2.2.61-65) Sparrows has classified against the risk categories outlined in FCA rule GENPRU 1.2.30R.

Sparrows Pillar 2 capital requirement, which is its own assessment of the minimum amount of capital that it believe is adequate against the risks identified, has been assessed as greater than its Pillar 1 requirement.

There is a considerable surplus of reserves above the capital resource requirement deemed necessary to cover the risks identified.

Regulatory capital

The main features of Sparrows’ capital resources for regulatory purposes, as at 31 December 2022 are as follows:

Capital item: £000
Tier 1 capital (called up share capital, share premium account, profit and loss account, externally verified interim net profits) 1,344
Total of Tier 2 and Tier 3 capital (broadly long and short term subordinated loans)  –
Deductions from Tier 1 and Tier 2 capital  –
Total capital resources, net of deductions 1,344

 

Sparrows holds regulatory capital in accordance with the CRD. All such capital is classified as Tier 1 capital and is therefore of the highest quality.

Remuneration Code Disclosures

Sparrows is subject to the BIPRU Remuneration Code. This section provides further information on Sparrows’ remuneration policy.

BIPRU Remuneration Code Staff

Sparrows has identified, and maintains a record of, BIPRU Remuneration Code staff (“Code staff”), i.e. staff to whom the BIPRU Remuneration Code applies. This includes senior management and members of staff whose actions may have a material impact on Sparrows’ risk profile. All of Sparrows’ Code staff fall into the “senior management” category of Code staff (rather than the “risk taker” category) for the purposes of the BIPRU Remuneration Code.

Decision Making / Remuneration Committee

Sparrows does not have and is not required to have a Remuneration Committee. The Board is responsible for Sparrows’ remuneration policy including determining the framework and policy for remuneration and ensuring it does not encourage undue risk taking; agreeing any major changes in remuneration structures; reviewing the terms and conditions of any new incentive schemes and in particular, considering the appropriate targets for any performance related remuneration schemes; and considering and recommending the remuneration policy for senior staff taking into account the appropriate mix of salary, discretionary bonus and share based remuneration.

In determining remuneration arrangements, the Board will give due regard to best practice and any relevant legal or regulatory requirements including the BIPRU Remuneration Code.

Link between pay & performance

There is ostensibly a discretionary variable pay element to the Sparrows’ remuneration package.

Quantitative information on remuneration

The FCA rules require certain firms to disclose aggregate information on remuneration in respect of its BIPRU Remuneration Code staff broken down by business area, senior management and other Code staff, including “risk takers”.

Sparrows has only one business area – investment management & advice.

Sparrows has 4 Directors but no material “risk takers”. Director remuneration is agreed formally at Board meetings. The link between performance and pay is inevitable in a small firm, but Sparrows’ risk-averse strategy and robust risk management systems mitigate risks.

Privacy Policy

At Sparrows Capital we are committed to safeguarding and preserving the privacy of our visitors. This Privacy Policy explains what happens to any personal data that you provide to us, or that we collect from you whilst you visit our site.

We do update this Policy from time to time so please do review this Policy regularly.

Information We Collect

In running and maintaining our website we may collect and process the following data about you:

  1. Information about your use of our site including details of your visits such as pages viewed and the resources that you access. Such information includes traffic data, location data and other communication data.
  2. Information provided voluntarily by you. For example, when you register for information or make a purchase.
  3. Information that you provide when you communicate with us by any means.

Use of Cookies

Cookies provide information regarding the computer used by a visitor. We may use cookies where appropriate to gather information about your computer in order to assist us in improving our website.

We may gather information about your general internet use by using the cookies. Where used, these cookies are downloaded to your computer and stored on the computer’s hard drive. Such information will not identify you personally. It is statistical data. This statistical data does not identify any personal details whatsoever.

You can adjust the settings on your computer to decline any cookies if you wish. This can easily be done by activating the reject cookies setting on your computer.

Use of Your Information

We use the information that we collect from you to provide our services to you. In addition to this we may use the information to provide information to you that you request from us relating to our services and to inform you of any changes to our website or services.

Storing Your Personal Data

In operating our website it may become necessary to transfer data that we collect from you to locations outside of the European Union for processing and storing. By providing your personal data to us, you agree to this transfer, storing or processing. We do our upmost to ensure that all reasonable steps are taken to make sure that your data is treated and stored securely.

Unfortunately the sending of information via the internet is not totally secure and on occasion such information can be intercepted. We cannot guarantee the security of data that you choose to send us electronically. Sending such information is entirely at your own risk.

Disclosing Your Information

We will not disclose your personal information to any other party other than in accordance with this Privacy Policy and in the circumstances detailed below:

  1. In the event that we sell any or all of our business to a buyer.
  2. Where we are legally required by law to disclose your personal information.
  3. To further fraud protection and reduce the risk of fraud.

Third Party Links

On occasion we include links to third parties on this website. Where we provide a link it does not mean that we endorse or approve that site’s policy towards visitor privacy. You should review their privacy policy before sending them any personal data.

Access to Information

In accordance with the General Data Protection Regulation (GDPR) you have the right to access any information that we hold relating to you. Please note that a reasonable charge may be payable.

Contacting Us

Please do not hesitate to contact us regarding any matter relating to this Privacy Policy at info@sparrowscapital.com.